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Aramco Trading (ATC) Fujairah and fuel retailer Gas & Oil Pakistan Ltd (GO Petroleum) have been granted a time-bound exemption by the state-backed Competition Commission of Pakistan (CCP) for importing and selling gasoline and diesel products to the Asian country.
ATC Fujairah, a wholly owned subsidiary of oil giant Saudi Aramco, is one of the world’s largest integrated energy and chemicals companies. Saudi Aramco also holds a 40% stake in GO Pakistan, which operates a network of retail outlets across the country that sell petrol, diesel, and lubricants.
Under the referred agreement, ATC Fujairah intends to meet GO Petroleum’s demand for essential petroleum products for its outlets.
“The parties submitted to the CCP that this arrangement is expected to achieve economies of scale in procurement for GO Petroleum, potentially resulting in better prices for Pakistani consumers,” CCP said in a statement. “Accordingly, the exemption sought was on exclusivity aspects of the commercial agreement to supply 100% demand of imported products for GO Petroleum’s retail outlets.”
The CCP further stated exemption on the product supply agreement has been granted with certain conditions, which stipulate that both parties must refrain from engaging in anti-competitive activities.
“The exemption does not include approval on any pricing terms and mechanisms related to the products,” the CCP said, while adding that exemption has been granted until June 2026, which can be extended provided both applicants identify the benefits that have accrued to the improved distribution network of petroleum products.
CCP said with this arrangement they hope to enhance the distribution network in Pakistan with resultant benefits that will translate for the consumers.
(Writing by Bindu Rai, editing by Seban Scaria)
